Best Life Insurance for Young Adults in 2024 (Your Guide to the Top 10 Companies)
State Farm, Northwestern Mutual, and New York Life offer the best life insurance for young adults, with rates at $92 per month. These top providers are recognized for their comprehensive coverage, financial strength, and flexible policy options, making them ideal choices for young adults.
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Heidi Mertlich
Licensed Insurance Agent
Heidi works with top-rated life insurance carriers to bring her clients the highest quality protection at the most competitive prices. She founded NoPhysicalTermLife.com, specializing in life insurance that doesn’t require a medical exam. Heidi is a regular contributor to several insurance websites, including FinanceBuzz.com, Insurist.com, and Forbes. As a parent herself, she understands the ...
Licensed Insurance Agent
UPDATED: Sep 16, 2024
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Editorial Guidelines: We are a free online resource for anyone interested in learning more about insurance. Our goal is to be an objective, third-party resource for everything insurance related. We update our site regularly, and all content is reviewed by insurance experts.
UPDATED: Sep 16, 2024
It’s all about you. We want to help you make the right coverage choices.
Advertiser Disclosure: We strive to help you make confident insurance decisions. Comparison shopping should be easy. We are not affiliated with any one insurance company and cannot guarantee quotes from any single insurance company.
Our insurance industry partnerships don’t influence our content. Our opinions are our own. To compare quotes from many different insurance companies please enter your ZIP code above to use the free quote tool. The more quotes you compare, the more chances to save.
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17,759 reviewsCompany Facts
Full Coverage for Young Adults
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Full Coverage for Young Adults
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Pros & Cons
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Full Coverage for Young Adults
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Pros & Cons
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The top pick overall for the best life insurance for young adults are State Farm, Northwestern Mutual, and New York Life. These companies offer competitive premiums, with average rates around $92 per month.
They stand out for their comprehensive coverage options, financial strength, and flexibility, making them ideal for young adults. With these providers, young adults can secure reliable life insurance that fits their budget and long-term financial goals.
Our Top 10 Company Picks: Best Life Insurance for Young Adults
| Company | Rank | Safe Driver Discount | A.M. Best | Best For | Jump to Pros/Cons |
|---|---|---|---|---|---|
 | #1 | 10% | A++ | Customer Service | State Farm |
 | #2 | 12% | A++ | Financial Planning | Northwestern Mutual |
 | #3 | 7% | A++ | Comprehensive Coverage | New York Life |
 | #4 | 9% | A++ | Long-term Security | MassMutual |
 | #5 | 9% | A++ | Personalized Solutions | Guardian Life |
 | #6 | 11% | A+ | Reliable Insurance | Mutual of Omaha |
 | #7 | 10% | A+ | Flexible Options | Pacific Life |
 | #8 | 12% | A+ | Financial Strength | Prudential |
 | #9 | 9% | A | Innovative Solutions | Transamerica |
 | #10 | 12% | A+ | Infrequent Drivers | Allstate |
Explore how these top providers can safeguard your financial future with tailored life insurance policies.
You can get free quotes for life insurance and secure financial protection for your loved ones by entering your ZIP code into our tool above.
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#1 – State Farm: Top Overall Pick
Pros
- Bundling Policies: State Farm offers significant discounts for bundling multiple insurance policies.
- High Low-Mileage Discount: Check our State Farm insurance review & ratings to learn about the substantial discount for low-mileage usage.
- Wide Coverage: State Farm offers various coverage options tailored for different business needs.
Cons
- Limited Multi-Policy Discount: The multi-policy discount of State Farm is not as high compared to some competitors.
- Premium Costs: Despite discounts, State Farm’s premiums might still be relatively higher for certain coverage levels.
#2 – Northwestern Mutual: Best for Financial Planning
Pros
- Comprehensive Financial Planning: Northwestern Mutual insurance review & ratings provides extensive financial planning services in addition to life insurance.
- Strong Dividend History: The company has a strong track record of paying dividends to policyholders.
- High Customer Satisfaction: Noted for excellent customer service and support.
Cons
- Higher Premiums: Northwestern Mutual’s policies can be more expensive compared to other providers.
- Medical Exam Requirement: Most policies require a medical exam, which might be inconvenient for some applicants.
#3 – New York Life: Best for Comprehensive Coverage
Pros
- Flexible Policy Options: New York Life offers a wide range of policy options to fit various needs.
- Strong Financial Stability: Discover in our New York Life insurance review & ratings how the company rated A++ by A.M. Best, indicating superior financial strength.
- Customizable Riders: Offers a variety of riders to customize policies.
Cons
- Complex Application Process: The application process can be more involved compared to other companies.
- Higher Costs: Premiums tend to be on the higher side, reflecting the comprehensive coverage offered.
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#4 – MassMutual: Best for Long-Term Security
Pros
- Long-Term Security: MassMutual insurance review & ratings provides policies that focus on long-term security and stability.
- Superior Financial Ratings: Holds an A++ rating from A.M. Best for financial strength.
- Strong Customer Support: Known for excellent customer service and support.
Cons
- Expensive Policies: The cost of policies can be higher than those from some competitors.
- Medical Exam Requirement: Most policies require a medical examination.
#5 – Guardian Life: Best for Personalized Solutions
Pros
- Customized Coverage: Guardian Life insurance review & ratings specializes in personalized solutions tailored to individual needs.
- Financial Strength: Rated A++ by A.M. Best, showcasing its strong financial stability.
- Excellent Customer Service: High marks for customer service and satisfaction.
Cons
- Higher Premiums: Policies can be more expensive than those of other insurers.
- Limited Online Tools: Fewer online resources and tools for policy management compared to competitors.
#6 – Mutual of Omaha: Best for Reliable Insurance
Pros
- Reliable Coverage: Mutual of Omaha insurance review & ratings highlighted its known for dependable and trustworthy insurance products.
- Competitive Rates: Offers competitive rates, especially for young adults.
- Strong Financial Ratings: Holds an A+ rating from A.M. Best for financial strength.
Cons
- Fewer Policy Options: Limited variety of policy options compared to some larger insurers.
- Medical Exam Requirements: Most policies require a medical exam.
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#7 – Pacific Life: Best for Flexible Options
Pros
- Flexible Policy Options: Offers a variety of flexible policy options to suit different needs.
- Strong Financial Ratings: Rated A+ by A.M. Best, indicating good financial health.
- Investment Opportunities: Policies with investment components available. Review this relevant guide titled “Pacific Specialty insurance review & ratings“
Cons
- Higher Premiums: Premiums can be higher, reflecting the flexibility and investment opportunities.
- Complex Policies: Some policy options can be complex and harder to understand.
#8 – Prudential: Best for Financial Strength
Pros
- Financial Stability: Strong financial ratings (A+) ensuring reliability and trust. Read more about Prudential insurance review & ratings.
- Wide Range of Products: Offers a diverse range of insurance products and services.
- Innovative Solutions: Known for innovative insurance solutions and flexible policy options.
Cons
- Higher Costs: Premiums tend to be higher compared to some competitors.
- Complex Application Process: The application and underwriting process can be more complicated.
#9 – Transamerica: Best for Innovative Solutions
Pros
- Innovative Products: Known for offering innovative life insurance solutions. Discover more in our Transamerica insurance review & ratings.
- Affordable Rates: Competitive pricing, especially for term life insurance.
- Diverse Policy Options: Provides a wide variety of policy options to meet different needs.
Cons
- Customer Service: Mixed reviews on customer service and support.
- Medical Exams: Many policies require a medical examination.
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#10 – Allstate: Best for Infrequent Drivers
Pros
- Discounts for Safe Drivers: Allstate insurance review & ratings discuss significant discounts available for safe driving records.
- Financial Strength: Rated A+ by A.M. Best, indicating strong financial stability.
- Bundling Discounts: Offers discounts for bundling multiple insurance products.
Cons
- Higher Premiums: Policies can be more expensive, particularly for comprehensive coverage.
- Limited Life Insurance Options: Fewer life insurance options compared to other major insurers.
The Best Life Insurance for Young Adults
The best life insurance for young adults tends to be affordable and flexible to accommodate their budget. Many young adults are establishing financial security and working on building savings. The best policy varies from person to person based on their needs and budget. On the bright side, life insurance is generally less expensive for young adults, so there may be a few policy options.
In general, term life insurance is the most inexpensive life insurance policy option. Even so, term life insurance rates can vary greatly depending on your age, gender, coverage amount, and more. Young adults with high-paying jobs might be more likely to invest in a permanent life insurance policy. These policies build cash value that accrues interest while term life insurance policies do not.
Universal life insurance policies, which are typically more flexible than whole life insurance policies, could also be an option.
Cost of Life Insurance for Young Adults
The cost of life insurance for young adults varies significantly based on the standard life insurance overage level and provider. For minimum coverage, monthly rates range from $92 with Mutual of Omaha to $129 with New York Life.
Life Insurance Policies Monthly Rates for Young Adults by Coverage Level & Provider
| Insurance Company | Minimum Coverage | Full Coverage |
|---|---|---|
| Allstate | $101 | $204 |
| Guardian Life | $117 | $218 |
| MassMutual | $105 | $210 |
| Mutual of Omaha | $92 | $195 |
| New York Life | $129 | $239 |
| Northwestern Mutual | $115 | $225 |
| Pacific Life | $114 | $205 |
| Prudential | $124 | $243 |
| State Farm | $93 | $180 |
| Transamerica | $98 | $192 |
Full coverage rates are higher, with State Farm offering the lowest at $180 and Prudential the highest at $243. State Farm and Mutual of Omaha are notable for their lower rates, making them attractive options for budget-conscious young adults seeking reliable life insurance.
Other providers like Guardian Life, MassMutual, and Northwestern Mutual also offer competitive rates, though generally at a higher cost.
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Choosing the Right Life Insurance Policy as a Young Adult
As noted above, the policy you want to invest in depends on your needs and budget. Your marital status could change your needs quickly. There are different life insurance policies for young adults depending on their situation, such as being single or becoming divorced. Also, do car insurance rates increase after getting a divorce? It’s important to talk to your agent about this topic.
For example, if you’re a single male with no dependents, you might prioritize a permanent life insurance policy as an investment. The cash value could add up over time for an emergency.
On the other hand, a married couple would need to consider how the death of one or both parents would affect the family financially. From there, it could be worthwhile to invest in a term life insurance policy with coverage that will protect their spouse and children.
The coverage amount depends on the parents’ income, debts, and assets. It usually helps to have a large death benefit to cover vehicle loans, a mortgage, and other significant debts that contribute to a high quality of life.
According to Debt.org, millennials average $87,448 in debt and make up most young adults. If you have any outstanding debt, it’s always a good idea to get enough coverage to pay off those debts.
Young adults may not have the extra monthly income for a permanent life insurance policy. If that’s the case, you can usually find convertible term life insurance policies to accommodate your budget and allow you to switch to a permanent policy in the future.
Young Adult Life Insurance Quotes
In most cases, young adults can find affordable life insurance quotes for under $20 per month, assuming there aren’t any major underlying health concerns.
Since age is a pricing factor, life insurance for 20-year-olds tends to be cheaper than life insurance for 30-year-olds, and so on. As shown below, the company you choose also plays a role in your prices.
20-Year, $250,000 Term Life Insurance Monthly Rates for Young Adults by Age & Provider
| Age | AIG | Allstate | John Hancock | MassMutual | Nationwide | Principal |
|---|---|---|---|---|---|---|
| 25 | $13 | $20 | $14 | $15 | $24 | $14 |
| 30 | $13 | $20 | $15 | $15 | $16 | $14 |
| 35 | $14 | $22 | $17 | $16 | $16 | $14 |
As you can see above, life insurance prices for young adult males can be reasonable. You may also notice that pricing varies from one company to the next. Nationwide, for example, charges higher rates on life insurance for 25-year-olds than 30-year-olds. Read our Nationwide insurance review for more information.
This might be a rare case, but it does emphasize the importance of shopping for quotes between different life insurance companies. Rates can also change based on the term duration.
30-Year Prudential Term Life Insurance Monthly Rates by Age, Gender, & Coverage Amount
| Age | Male, $100,000 | Female, $100,000 | Male, $250,000 | Female, $250,000 | Male, $500,000 | Female, $500,000 |
|---|---|---|---|---|---|---|
| 25 | $16.89 | $14.35 | $20.35 | $17.94 | $33.25 | $28.44 |
| 30 | $16.89 | $14.44 | $21.44 | $19.47 | $35.44 | $31.50 |
| 35 | $16.89 | $14.53 | $23.19 | $21.00 | $38.94 | $34.57 |
With the sample rates above, you can see that women tend to pay less for life insurance than men. Additionally, five times the coverage costs only about twice as much. If you’re looking for better value, a higher coverage amount with a more extended coverage term could be worthwhile.
If you are a young adult looking for a life insurance policy, it’s almost always better to invest sooner than later. You can stop payments if you get into a financial crisis, but you could lose your coverage.
For parents, it could be worthwhile to pay extra on top of your rates to include a child rider. A child rider is a children’s life insurance plan designed to cover a child’s funeral expenses if they unexpectedly pass away.
Case Studies: Best Life Insurance for Young Adults
Understanding how life insurance can fit into your financial plans is crucial. These case studies illustrate different scenarios where young adults have chosen life insurance policies tailored to their unique needs and circumstances.
- Case Study #1– Financial Security: John, 25, wanted to secure his financial future and provide for his loved ones. He chose a term life insurance policy from State Farm with affordable premiums and specified coverage, ensuring his family’s financial well-being while staying within his budget.
- Case Study #2– Comprehensive Protection Plan: Emily, 28, sought a comprehensive life insurance plan with lifelong coverage and investment potential. She selected a permanent life insurance policy from Northwestern Mutual, which offered both protection and future financial opportunities.
- Case Study #3– Student Loan Safety Net: Recent graduate Mark, concerned about his substantial student loan debt, chose Transamerica’s policy designed for student loan protection. This policy provided a lump sum payout to handle his outstanding loans and avoid financial hardships for his family.
- Case Study #4– Growing Family Coverage: Sarah, 30, aimed for financial stability for her growing family. She opted for Guardian Life’s family life insurance policy, which protected her, her spouse, and their children, ensuring their financial future remained secure.
- Case Study #5– Retirement Planning: Entrepreneur David, 32, focused on wealth-building and retirement planning. He selected an indexed universal life insurance policy from Pacific Life, offering a death benefit and potential cash value growth tied to an index’s performance, aligning with his long-term investment goals.
These case studies highlight the diverse needs and goals young adults have when choosing life insurance. By evaluating your own situation and comparing options, you can find the best policy to secure your financial future.
Jeff Root Licensed Life Insurance Agent
For personalized advice, consider consulting with an insurance agent to explore the most suitable options for you. Speaking with local life insurance agents can help you find the right provider and policy.
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Keys to Buying Life Insurance as a Young Adult
When considering the best life insurance for young adults, it’s essential to explore various options. Many wonder, “should I get life insurance in my 20s?” Starting early can secure lower premiums. The best whole life insurance for adults offers long-term financial benefits and permanent coverage.
Among the best life insurance companies for young adults are State Farm, Northwestern Mutual, and New York Life, known for their comprehensive policies and competitive rates. For teenagers and young people in their early twenties, term life insurance is often the most affordable. However, the best whole life insurance for young adults can provide both security and an investment component.
Finding the best life insurance policy for young adults involves comparing insurance quotes online, understanding personal needs, and possibly consulting with an insurance agent. Before you go, enter your ZIP code below to get free quotes from the top life insurance companies in your area.
Frequently Asked Questions
What is the best life insurance for young adults?
The best life insurance policy for young adults varies depending on their needs and budget. Generally, term life insurance is the most affordable option. However, young adults with high-paying jobs might be more interested in the best permanent life insurance policies that can build cash value over time.
How do I know which life insurance policy to get as a young adult?
The policy you want to invest in depends on your situation, such as your marital status and whether you have dependents. For example, if you are a single male with no dependents, you might prioritize a permanent life insurance policy as an investment. On the other hand, if you are married with children, a term life insurance policy with coverage that protects your spouse and children may be more suitable.
Give your loved ones the gift of financial security by entering your ZIP code bottom to find life insurance that doesn’t break the bank.
How much does life insurance cost for young adults?
Life insurance for young adults is generally more affordable than it is for older adults. Young adults can find affordable life insurance quotes for under $20 per month, assuming there aren’t any major underlying health concerns. Life insurance rates can vary greatly depending on your age, gender, coverage amount, and more. It is always advisable to compare quotes from different insurance companies to find the best policy for you.
Why should young adults invest in life insurance?
Investing in life insurance as a young adult can be an effective means of establishing financial stability for your family. It is usually cheaper for young adults, and it can help protect your family’s financial future. If you have children, you could start protecting your family’s financial future for under $15 per month.
What are the keys to buying life insurance as a young adult?
The keys to buying life insurance as a young adult include understanding your needs and budget, comparing quotes from different insurance companies, and knowing the different types of policies available. It is also essential to talk to your insurance agent about any questions or concerns you have.
To delve deeper, refer to our in-depth report titled “can universal life insurance be converted to a paid up whole life policy?“
What types of life insurance policies are available for young adults?
You can choose from term life, whole life, and universal life insurance, each with different benefits and costs.
How can I find the best life insurance rates as a young adult?
Compare quotes from multiple companies, work with an insurance broker, and review policy terms carefully.
Are there life insurance options that don’t require a medical exam?
Yes, some companies offer no-exam policies, but they may have higher premiums or lower coverage.
For more details, see our extensive guide on insurance, “Types of Life Insurance,” for more insights.
How does my lifestyle affect my life insurance rates?
Smoking, drinking, and risky activities can increase premiums. A healthy lifestyle can help you get lower rates.
For more information, check out our detailed guide titled “Individual Health Insurance: A Complete Guide” for all the specifics.
Can I adjust my life insurance coverage as my needs change?
Yes, many policies let you adjust coverage. You can convert term to permanent, increase coverage, or add riders. Always check with your insurance agent.
Stop overspending on life insurance. Use our tool below to compare rates from top providers near you.
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Heidi Mertlich
Licensed Insurance Agent
Heidi works with top-rated life insurance carriers to bring her clients the highest quality protection at the most competitive prices. She founded NoPhysicalTermLife.com, specializing in life insurance that doesn’t require a medical exam. Heidi is a regular contributor to several insurance websites, including FinanceBuzz.com, Insurist.com, and Forbes. As a parent herself, she understands the ...
Licensed Insurance Agent
Editorial Guidelines: We are a free online resource for anyone interested in learning more about insurance. Our goal is to be an objective, third-party resource for everything insurance related. We update our site regularly, and all content is reviewed by insurance experts.
